[US] New wage deal for Amazon warehouse and transportation workers including free Prime

Amazon has announced that it will increase pay for its more than 800,000 US warehouse and transportation workers, finally giving them Amazon Prime for free, HR Grapevine reports.

The retail giant is set to raise hourly wages by at least $1.50, bringing the company’s average starting wage to more than $22 an hour. It will also offer the $139 yearly Prime benefit to employees for free.

Amazon has reportedly been scrutinised over safety and working conditions at its warehouses and it has resisted unionisation efforts. However, things are changing because workers are now backed by the powerful Teamsters union.

News of the pay hike comes days after Amazon CEO Andy Jassy informed all corporate staff they must start working from the office five days per week, provoking a significant employee backlash.

A Senate Health, Education, Labor and Pensions Committee investigation found Amazon’s warehouses were particularly dangerous for workers during the company’s annual Prime Day event as well as the holiday season. 

Amazon workers have repeatedly hit the headlines, with complaints about the “gruelling” experience of rushing around cavernous warehouses while the company tracks their every move.

Amazon reportedly stated that it has made progress on worker safety. The company claims work-related injuries are down by 28 per cent and serious injuries are down by 75 per cent over the past five years.

The decision to increase pay is another marker of the tight jobs market for logistics workers as more American shoppers go online. The US labour market has reportedly considerably cooled during the past year yet the economy is still adding jobs.

According to the Labor Department, the average hourly wage for transportation and warehouse workers rose to $30.79 in August, up 22 per cent from August 2020. In July, more than 460,000 jobs were unfilled in the transportation and warehouse sector, it said.

Competitors UPS, Walmart and Target have also hiked wages for warehouse workers. In 2023, UPS struck a five-year deal with the Teamsters union which included increasing starting pay to $23 an hour during the contract.

Amazon’s latest wage rise comes before the holiday season, usually the busiest time of year for online shopping.

Source: HR Grapevine

(Link via original reporting)

Amazon has announced that it will increase pay for its more than 800,000 US warehouse and transportation workers, finally giving them Amazon Prime for free, HR Grapevine reports.

The retail giant is set to raise hourly wages by at least $1.50, bringing the company’s average starting wage to more than $22 an hour. It will also offer the $139 yearly Prime benefit to employees for free.

Amazon has reportedly been scrutinised over safety and working conditions at its warehouses and it has resisted unionisation efforts. However, things are changing because workers are now backed by the powerful Teamsters union.

News of the pay hike comes days after Amazon CEO Andy Jassy informed all corporate staff they must start working from the office five days per week, provoking a significant employee backlash.

A Senate Health, Education, Labor and Pensions Committee investigation found Amazon’s warehouses were particularly dangerous for workers during the company’s annual Prime Day event as well as the holiday season. 

Amazon workers have repeatedly hit the headlines, with complaints about the “gruelling” experience of rushing around cavernous warehouses while the company tracks their every move.

Amazon reportedly stated that it has made progress on worker safety. The company claims work-related injuries are down by 28 per cent and serious injuries are down by 75 per cent over the past five years.

The decision to increase pay is another marker of the tight jobs market for logistics workers as more American shoppers go online. The US labour market has reportedly considerably cooled during the past year yet the economy is still adding jobs.

According to the Labor Department, the average hourly wage for transportation and warehouse workers rose to $30.79 in August, up 22 per cent from August 2020. In July, more than 460,000 jobs were unfilled in the transportation and warehouse sector, it said.

Competitors UPS, Walmart and Target have also hiked wages for warehouse workers. In 2023, UPS struck a five-year deal with the Teamsters union which included increasing starting pay to $23 an hour during the contract.

Amazon’s latest wage rise comes before the holiday season, usually the busiest time of year for online shopping.

Source: HR Grapevine

(Link via original reporting)